Home Loan Modifications and the Sub-Prime Mortgage Crises [mortgageinsuranceguide.blogspot.com]
Watch the full episode here empowerme.tv The big lending institutions are at it again, making high interest loans to people who have no ability to pay those loans back. Only this time it isn't home loans . . . it's credit cards! The financial community made billion last year in credit card fees. Citibank just announced it's 7th straight profitable quarter and a 74% jump in quarterly profits. Bank of America made .2 billion in the third quarter, Morgan Stanley announced 3.8 Billion. They're lending to unqualified buyers at usurious rates. Why lend money for 30 years at 4% when you you tap into a 20%-plus opportunity that people can't escape from, even in bankruptcy? We currently have more than 800 million credit cards in circulation domestically, more than two for every man, woman and child in the country. These predatory practices are targeted towards students and those in need, then packaged in complicated derivativ es that kick off high returns . . . hence the 80% interest rates currently legal thanks to our compromised Congress. Look out, this crash will be more frightening and wider than the last one. Demand credit card reform before it's too late. Follow our network on twitter @emPOWERmedottv twitter.com You can also like us on Facebook for show updates! www.facebook.com
mortgageinsuranceguide.blogspot.com Next Sub-Prime Fiasco is on it's Way
The sub-prime mortgage crises has hit the US housing market, and hit it hard. The crises began in the weak Midwest state economies and spread to the whole nation around 2007. This article would throw light on the nature and extent of the present sub-prime mortgage crises and the best possible solution that is being opted for by the crises ridden borrowers - home loan modification.
Â
The Sub-prime mortgage crises
Â
To understand the crises better, it is important to familiarize with the term 'Sup prime lending' that holds particular significance in the US economy and the housing market. Sub prime lending is a term used for making mortgage and other loans available to the ones whose credit history does not make them eligible for direct market rates. Evidently, sub prime lending is a risky affair for both the parties involved because of the shaky basis of bad credit history, insufficient income to meet the payments, higher interest rates and the like.
Â
The American housing industry was enjoying a boom, which abruptly ended in the middle of the year 2006.
Â
The steep ascend in the housing foreclosures and the collapse of the housing boom, caused many sub-prime lending firms to file for bankruptcy or eventually shut down, and there were big names that were included in this list. The stock prices consequently collapsed and the sub prime mortgage industry fueling the American economy faced a huge threat.
Â
The result has been that the many people in the country are loosing their homes because of incapability to pay off the monthly payments of the loan agreement. This is when loan modification comes into picture as a valid alternative.
Â
Home loan modification
Â
When the bank realizes that the borrower would fall short of the payments, then as a lender it has very few and almost impractical solutions in hand, and the same goes for the ill-fated borrowers. The bank can however, make a few alterations in the loan agreements that would make the payments more affordable and let the borrowers keep their condo.
Â
Home Loan modification has become a widespread popular saving tool for many in the crises ridden blues. The government has enacted many bills to counter the threats of the crises, the latest being Obama's foreclosure stimulus package which aims to pump around $ 75 billion to encourage the lenders and the banks to go for home loan modifications. The sub-prime mortgage crises has now hit the major economies of the world and home loan modifications seem to be the only answer to save the globe. Suggest Home Loan Modifications and the Sub-Prime Mortgage Crises Articles
Question by web_trace: Who supported giving sub prime loans that tanked this economy? I always hear the economy sank once people defaulted on their home loans and that they would have never qualified for a loan in the first place had it not been for sub prime business. So who supported giving sub prime home loans, and aren't they to blame for the tanking economy? Best answer for Who supported giving sub prime loans that tanked this economy?:
Answer by TruthSeeker
Friend, we know who, and I personally think they should be tried for treason. edit: Home "ownership" isn't a "right" given to anyone, either by God or by the US Constitution. God's word says, if a man won't work, don't feed him, and I think this applies to giving them a home too!! Man oh man have we fallen from God's way, but he is full of mercy.
Answer by 2U2
Bill Clinton was ultimately responsible. It started in his presidency around 1996, but was solidified in 1998.(That was when the Green light to me was given to sign away on loans I would have never ever bought! or could have) I was in Mortgages, and I was an underwriter. We use to have a tight restriction policy when it came to housing to debt ratio. Housing could only be 35% of your total debt. Also 2 years on the job, 5 years same line of work, and live in your residence at least 1 year. 10% minimal down payment and you had to have comparable credit. This meant if you were going to borrow $ 100K you had to have at least a 100k in paid back credit. Every thing must be verified i n writing. Then all of a sudden we, as underwriters, were given a new set of restrictions. 1yr on the job, 5% down and as long as you had good credit we didn't have to verify anything. Let me say this has nothing to do with being a Democrat or a Republican. It is a fact of poor judgment. Bill signed the "Bill" but his signature alone didn't get it passed, but he holds VETO power and should have used it.
